The OE is solved, but the war of the CGD continues – Daily News – Lisbon

The conflict around the public bank will continue in plenary in the beginning of December, and in the parliamentary commission of inquiry, which has been suspended will resume

Approved, without surprises, the State Budget (OE) for 2017, now with most of the left reinforced at the most a deputy (to the PS, the BE, PCP and PEV joined–if this time the of the PAN), the Parliament prepares to continue the seattle that have more passionate members in the recent times, the only so-called “cgd”.

Already on the 6th of December, in the plenary, discuss new projects in the PSD on the duties of transparency to the administrators of the General Box of Deposits and of the amendment to the Statute of the Public Manager (which administrators of public bank have been removed by a decree of the government). And then, probably in early January – if not before -will be reactivated the parliamentary commission of inquiry to the CGD. Much has passed since their works were suspended (on 3 November): António Domingues and several administrators resigned; before you had that Domingues negociara in the EU the recapitalisation plan, even though it was still the vice-president of BPI, and probably up to the committee again meet to know will be who will be the new team leader of the public bank (António Costa has promised that in this week to submit for the visa prior in Brussels). No one will wonder if the PSD you want to listen to it again Domingues or the minister of Finance, Mári o Centeno, or the secretary of State at the epicenter of this hurricane, Ricardo Mourinho Félix.

THE CGD was the central theme of the intervention end of the PSD in yesterday’s debate of the OE 2017. José Matos Correia said that the whole case on the public bank “will be in the annals of history as a case study of incompetence”. After stating that, in this case, “guilt is too much to die unmarried”, he concluded: “Someone has to take political responsibilities.”

The government and the PS responded by saying, for example, by João Paulo Correia (mr), which is in fact the PSD and the CDS “are against the recapitalisation of the public,” the public bank, and only the “want to privatize the Box.” But – he added – “not only missed this goal as watched casually the collapse of BES and Banif and they hid the new need for recapitalisation of the Box”.

Pedro Nuno Santos, secretary of States for Parliamentary Affairs, acknowledged that “the management process of the recapitalisation of the Box is not an easy process”, which “is complex and is not free of moments less good”. “Maybe – alvitrou – this explain why it is that the recapitalisation of CGD has not been made in due accordance with the requirements of the capitalization of the CGD needed while the PSD ruled Portugal.” Accusing the former executive of “push with the belly” and stressing that “PS has encountered a banking system that has not had the response that should have been” in the past, Pedro Nuno Santos called on the PSD to approve the standard of OE that will allow the government to indebt itself in 2.7 billion euros in 2017 in order to recapitalize the bank (the standard has been approved but the PSD voted against).

Rating in the “review”

The crisis policy at the bank of the State was reflected yesterday in a note from the DBRS. The rating agency decided to put in “review” the current rating given to CGD, a revision of the “negative sense” and that you may end up with a cut on the note assigned to the bank the public to levels of speculative – the rating given by DBRS to the Box is now at BBB-, the lowest level before the label of “speculative”.

“The revision in rating reflects the increased risks that the Group [CGD] faces in relation to the issues of the governance of the company, the recapitalization plan and the difficulties of the group in the best profitability and the quality of their assets,” he explained to the agency the canadian. Second added, the reevaluation to the rating of CGD, which can take up to three months, you will study what impact the recent resignation of a majority of the directors” of a public bank in the restructuring plan, but also “delays” that this new step behind in the dossier may imply at the level of implementation of the reinforcement plan of the capital.

“Despite the Group being in the process of a recapitalisation significant, which will strengthen its balance sheet, this re-evaluation will consider the delays that are the checking in process and what are the risks of running that can bring the same”, warned the agency. Thus, “as a result, DBRS estimates that the CGD go get toned to the level of capital for a longer time than initially expected”. To the agency of the canadian, the recapitalization is an “essential operation”. As recalls, the plan includes an injection of 2.7 billion of the State, the transfer of 500 million shares of ParCaixa and the conversion into capital of 900 million euros in convertible bonds subscribed by the State. The strengthening of capital will also by emissions of up to a thousand million in instruments to be subscribed by private entities.

With Filipe Cardoso